Brokers advising NSW clients on compulsory third party (CTP) cover face fresh cost pressures after the State Insurance Regulatory Authority (SIRA) confirmed that a range of CTP scheme benefits increased from October 1, 2026.
The annual indexation covers legal costs, medico-legal fees, weekly benefit payments, and non-economic damages under the Motor Accident Injuries Act 2017. It also applies to damages under two earlier statutes still processing open claims: the Motor Accidents Act 1988 and the Motor Accidents Compensation Act 1999.
SIRA published three legislative instruments alongside the updated fee schedules: the Motor Accident Injuries (Indexation) Order (No. 2) 2026, the Motor Accidents (Determination of Non-Economic Loss) Order 2026, and the Motor Accidents Compensation (Determination of Loss) Order 2026.
Under section 3.22 of the Act, statutory benefits amounts are indexed each year on October 1 by the percentage change in NSW average weekly total earnings, as published by the Australian Bureau of Statistics (ABS). The same formula, in section 4.22, governs the annual adjustment to the non-economic loss damages cap.
As of October 1, 2026, the maximum weekly statutory benefits amount under section 3.9 stands at $3,853. The maximum recoverable for non-economic loss damages under section 4.13 is $521,000. Higher fee caps and payment thresholds feed directly into insurer claims reserves, which in turn influence Green Slip pricing at renewal.
SIRA’s 2017 CTP Scheme Performance Report to June 30, 2025, showed the average Green Slip premium across all NSW vehicles rose $35, or 7%, in the year to June 2025, reaching $536 including levies and GST. That remains below the pre-reform average of $935, but the direction has shifted after years of post-reform declines.
Fund levies are also climbing. SIRA data shows the total average fund levy rose from $164.80 to $190.60 between January 2025 and January 2026. The Motor Accidents Operational Fund component drove much of that increase, rising from $37.50 to $65.50.
Read more: Car insurance premiums: why motor claims costs keep climbing in Australia
The CTP cost increases sit within a broader motor insurance environment where claims inflation continues to take hold. The Insurance Council of Australia (ICA) reported in March 2025 that average motor claims costs rose 42% between 2019 and 2024. ICA CEO Andrew Hall said the trajectory “is unsustainable for Australian motorists” and called for government reform to address cost drivers outside the industry’s control.
Suncorp Group CEO Steve Johnston said in August 2026 that “insurance inflation is different from CPI, and it’s running at a different clip,” adding that premiums “have now become a very material part of a household budget.”
The Australian Securities and Investments Commission (ASIC) found in August 2026 that motor vehicle insurance premiums rose 8% in the 12 months to July 2025. ASIC commissioner Alan Kirkland said “consumers deserve to know why premiums are going up” and warned that “ASIC will take enforcement action where disclosures about insurance premiums are inaccurate or misleading.”
While those findings relate to comprehensive motor cover rather than CTP, they signal the inflationary environment in which the annual Green Slip indexation operates.
National Insurance Brokers Association (NIBA) CEO Richard Klipin said in February 2025 that “insurance brokers are on the front line, ensuring Australians get the coverage they need at a fair price,” adding that “their role is critical in navigating affordability challenges and assisting with risk mitigation.”
Read more: ASIC cracks down on car insurance: what it means for brokers
Under the 2017 Act, most people injured in a motor vehicle accident in NSW can claim statutory benefits for up to 52 weeks regardless of fault. These cover weekly income payments, medical and treatment costs, and commercial attendant care.
Claimants with threshold injuries are capped at 52 weeks of weekly payments. For those whose injuries are not threshold and who were not mostly at fault, weekly payments can extend to 104 weeks. Where a damages claim is pending, that ceiling rises to 156 weeks if permanent impairment does not exceed 10%, or 260 weeks if it does.
SIRA’s performance report noted that 97% of claims were accepted for statutory benefits in 2024-25, with roughly 3,800 claims reported per quarter. It recorded 91,313 claims under the 2017 scheme from its commencement to June 30, 2025, with a further 10,362 expected but not yet reported.
One counterbalancing factor for premiums is fading. SIRA’s transitional excess profits and losses mechanism has recovered $542.9 million from CTP insurers since 2020, which the regulator said “has led to a reduction in premiums.”
SIRA confirmed in September 2025 that no insurer profits would be reclaimed that year, noting this “reflects how the insurers have adjusted their pricing during the transitional period.”
With that downward pressure easing, brokers with NSW motor portfolios should factor the $3,853 weekly benefits cap and $521,000 non-economic loss ceiling into renewal conversations, particularly for fleet and commercial clients where CTP costs aggregate across multiple vehicles.
